Srinagar, Nov 14:  Valley’s apex industrial body, the Federation Chamber of Industries Kashmir (FCIK) today urged banks operating in the state to strictly abide by the Reserve Bank of India guidelines on loan recovery.
 The federation, according to a handout issued here, held its administrative council meet today to discuss a recent incident in which J&K Bank recovery team had “raided the residential address of a local hotelier.”
 The federation alleged that during the raid there was misbehaviour from both sides.
 “FCIK has always taken a stand that financial institutions should show no leniency to the wilful defaulters. However, any step by the bank against the defaulters should be within the parameters of law,” it said.
 The federation said the recovery teams should not use such force that amounts to the infringement of the borrowers’ fundamental rights.
 “As most of the defaulters have turned sick, the government should take serious steps to rehabilitate the units,” it said.
 “The Central Government in this connection had made tall promises to rehabilitate the sick units and had some time back reserved Rs 100 crore for the purpose of rehabilitation. But the bureaucrats in New Delhi sabotaged the move of the Central government.”
 Meanwhile, the federation has appealed the financial institutions operating in the state to follow “their recovery cases in a civilized manner and as per the guidelines issued by the RBI.”
 “We also appeal to the traders’ leaders and individuals who have given their opinions/statements on the issue to understand the gravity of the issue and refrain from issuing statements in haste and without verifying the facts,” it adds.
 To mention, a recovery team of J&K Bank had recently gone to the home of a local hotelier. “The hotelier,” according to the bank, “had threatened the team by showing his pistol.”

Lastupdate on : Wed, 14 Nov 2012 21:30:00 Makkah time
Lastupdate on : Wed, 14 Nov 2012 18:30:00 GMT
Lastupdate on : Thu, 15 Nov 2012 00:00:00 IST